Analyse the role of budgets and variances in the strategic planning of N-Pharma
Applying suitable tools such as Ansoff's growth matrix and Porter's generic strategies, evaluate the three growth options.
Option 1:Market development in Europe
According to Ansoff's Matrix, N-Pharma's development in Europe would be seen as market development as they are entering a new market with an existing product.
Market development is the medium rish growth strategy that relates to businesses selling existing products in new markets. This can be done using new distribution channels to sell the product in a different location i.e Europe. This could be risky if the business is unfamiliar with local market conditions and cultures. Alternatively, the product could be adjusted by using more attractive or appealing packaging to suit the new audience. Prices could also be changed to attract different market segments.
One advantage of this growth method is that it is not high risk since the business will be familiar with their product being marketed, in this case pharmaceutical goods.
Option 2:Market penetration within China
According to Ansoff's growth matrix, choosing this option would involve selling existing products in an existing market.
This method...
Aims to increase N-Pharma's market share of its current products.
This is a low-risk growth strategy for N-Pharma
Using better advertising will enhance the desirability of the existing product thus attracting new customers, or will offer more competitive prices.
Offering membership loyalty schemes will entice existing customers to make more frequent purchases
Advantages:
N-Pharma is focusing on markets and products that it is familiar with, therefore minimising the market research expenditure, and in turn their overall cost.
This method (market penetration) is the safest of the four growth strategies in the Ansoff matrix.
Limitation:
N-Pharma's competitors, especially strong rivals, will react to N-Pharma (trying to take away their customers and market share), possibly resulting in aggrressive techniques, such as, price wars.
Identify two driving forces and two restraining forces onTadshi Agi's proposal to change the corporate culture of N-Pharma and encouragement of ethical practices in all departments
Evalaute the threat to N-Pharma of (a) the competition from generic drug makers and (b) a takeover from one of the leading pharmaceutical companies.
Use the most appropriate tool to explain the three growth strategies being considered by N-Pharma.
Assess the three growth strategies and examine the advantages and disadvantages of each.
Explain why critical path analysis is important for businesses such as N-Pharma.
Using a decision tree, evaluate the three options being considered by the board of directors of N-Pharma for future growth.
Applying suitable tools such as Ansoff's growth matrix and Porter's generic strategies, evaluate the three growth options.
Option 1: Market development in Europe
According to Ansoff's Matrix, N-Pharma's development in Europe would be seen as market development as they are entering a new market with an existing product.
Market development is the medium rish growth strategy that relates to businesses selling existing products in new markets. This can be done using new distribution channels to sell the product in a different location i.e Europe. This could be risky if the business is unfamiliar with local market conditions and cultures. Alternatively, the product could be adjusted by using more attractive or appealing packaging to suit the new audience. Prices could also be changed to attract different market segments.
One advantage of this growth method is that it is not high risk since the business will be familiar with their product being marketed, in this case pharmaceutical goods.
Option 2: Market penetration within China
According to Ansoff's growth matrix, choosing this option would involve selling existing products in an existing market.
This method...
- Aims to increase N-Pharma's market share of its current products.
- This is a low-risk growth strategy for N-Pharma
- Using better advertising will enhance the desirability of the existing product thus attracting new customers, or will offer more competitive prices.
- Offering membership loyalty schemes will entice existing customers to make more frequent purchases
Advantages:- N-Pharma is focusing on markets and products that it is familiar with, therefore minimising the market research expenditure, and in turn their overall cost.
- This method (market penetration) is the safest of the four growth strategies in the Ansoff matrix.
Limitation:Identify two driving forces and two restraining forces onTadshi Agi's proposal to change the corporate culture of N-Pharma and encouragement of ethical practices in all departments
Evalaute the threat to N-Pharma of (a) the competition from generic drug makers and (b) a takeover from one of the leading pharmaceutical companies.
Use the most appropriate tool to explain the three growth strategies being considered by N-Pharma.
Assess the three growth strategies and examine the advantages and disadvantages of each.
Explain why critical path analysis is important for businesses such as N-Pharma.
Using a decision tree, evaluate the three options being considered by the board of directors of N-Pharma for future growth.